What is the entry for the claim recovered from fire insurance?
by Philip Kahoro
Q: In the case of claim receivable from Insurance for stock stolen from a shop, where would the credit be posted and under what group of accounts in Tally?
A: The journal entries for an insurance claim are generally:
DR Insurance company (receivable/debtor)
CR Insurance received (income)
Insurance claim approved
CR Insurance company (receivable/debtor)
Insurance company pays out
Click here to post comments
Return to Ask a Question About This Lesson!.
Advertise on Accounting-Basics-for-Students.com